Silver Lining in Spain's Ratings Cut

Investors See More Pressure on Government to Seek a Bailout; Now 'Relying on the Kindness of Strangers'

By

Cynthia Lin and

Nicole Hong

Oct. 12, 2012 5:38 p.m. ET

For some investors who own Spanish bonds, bad news can look a lot like good news.

Standard & Poor's two-notch downgrade of Spain left the country's credit rating one level above "junk." But instead of selling off, Spanish bonds ended up on the week, with yields near a six-month low at 5.608% at the close of trading Friday.